A strategy that identifies and exploits market cycles.
Japanese candles 30 seconds
Expire 15 secondsGrafico Pocket Option OTC 92%
Introduction
Looking at any graph you can’t help but think about the trend of
prices fluctuating up and down. We are certain of one thing: any trend
first then it reverses and so on ad infinitum. But how to know when the market
“tour”?
This strategy gives us the tools to identify the turning point and
know the exact moment in which to open a position, i.e. what
every trader dreams!
Configuration
We trade on the Pocket Option OTC market because it pays 92%, and it is
always open 24 hours a day, every day.
Let’s open the Pocket Option chart. If you don’t have this broker yet you can
sign up via this link (universal Pocket Option link valid for all
countries) and if you want, request the 50% voucher. We choose OTC assets 92%.
By highlighting the yellow stars we will keep the assets ready in the upper part
of the graph, to be selected more quickly.
We choose the parameters of the graph.
We use a 30 second Heikin Ashi candlestick chart.
Preparation of graph with indicators
We will use 4 indicators supplied with Pocket Option.
● Bollinger Bands 7, 2
● Schaff Trend Cycle 2, 35, 6, 2, 1
● Schaff Trend Cycle 23, 50, 10 2, 3 (unchanged)
● Vortex 14 (unmodified)
Let’s apply the indicators to the graph:
The colors of the lines are based on personal tastes.
We choose the 30 second expiry and here is what the graph looks like:
We are ready to get started.
The Trading System
We therefore identify a situation in which prices “run” on one
band. This indicates a trend situation.
Sooner or later the trend will fade and they will begin to move away from the band.
This is a situation of probable shift towards the opposite band,
so we have to stay on alert because at any moment
an entry signal may arrive from our indicators.
Note that a candle should appear while moving away from the band
with a smaller body than the previous one (in Heikin Ashi candles the body is
proportional to the strength of the trend), which means change of trend.
At this point we observe the Vortex indicator, as a condition for the
goodness of the signal must have the “mouth” wide open:
The signal can arrive at any moment.
CALL signal
1. A candle appears with a smaller body than the previous one
2. The Schaff Trend Cycle indicator, the bottom one with blue line,
it must be at the bottom.
3. The Vortex indicator must be well open (the green line will be
down)
4. Pay attention to the Schaff Trend Cycle indicator, blue line. Not
as soon as the line moves (it happens instantaneously) from the shallow bottom
the operation opens at the top.
In the figure Call opening (here expiry 30 but from the tests 15 is even better)
The operation opening signal
Here is a detail of the behavior of the line that gives us a signal
bearish:
Short segments or those that develop in multiple stages are not good.
Furthermore, the slope of the line also has its importance, even if it is not
determining factor, for example in the figure:
Both signals are valid but the one on the left is better because the
slope comes closer to the vertical.
To understand even better, we have uploaded numerous examples to YouTube.
Observations
● Click immediately at the signal. Follow the countdown of
seconds. The signal appears exactly when the time expires
candle (30 seconds). We are talking about trades lasting a few seconds, so one
a fraction of a second of delay can cause you to lose.
● The strategy is valid for any time frame. Works well
respecting the proportions, for example with 1 minute candles and
expires 30 seconds.
● The indicators change their appearance slightly in the chart
following the formation of new candles, so watch the
previous signals to evaluate old entries is only indicative.
● Avoid low volatility markets (small candles that move
as soon as). Trade when the market is lively.
● Look for “clean” situations, like this one for example:
And not like this:
Conclusion
This strategy has a high success rate and we hope you
found the simple but effective system to obtain profits.
Now we ask you for a small, but big favor for us, if you watch the videos
examples click like on the YouTube video, and subscribe for any
updates.
Furthermore, your comment on the matter on our Telegram would be very useful
of Binary Options.
Thank you and Happy Trading!
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